MCA-Nepal relaunches bid for 297-km power line construction

KATHMANDU: The Millennium Challenge Account Nepal (MCA-Nepal) has relaunched the call for bids to construct a 297-kilometre power transmission line.

The transmission line, to be built under the Millennium Challenge Corporation (MCC) Nepal Compact, aims to strengthen Nepal’s power transmission network.

The bid submission deadline is January 30, 2025, with construction divided into three lots: Lapsiphedi-Ratmate-New Hetauda, Ratmate-New Damauli, and New Damauli-New Butwal, MCA-Nepal announced in a press statement.

The relaunch follows a comprehensive review of the previous bidding process and includes design optimisations, improved access to tower locations, and updates to commercial terms based on bidders’ feedback. These adjustments address the main cost drivers identified in the initial bids, ensuring more feasible and cost-effective proposals.

On August 30, 2024, MCA-Nepal awarded a $12.36 million contract to Transrail Lighting to construct the 18km Nepal portion of the Butwal-Gorakhpur transmission line, which will be completed within 21 months. "After securing the contract for the 18km segment, we are confident that the redesigned requirements for the remaining 297 km will attract strong market interest and competitive bids," said Khadga Bahadur Bisht, Executive Director of MCA-Nepal.

The relaunch marks another milestone in the progress of the MCC Nepal Compact, which has made significant strides over the past year. With contractors already working on the three 400 kV substations and the 18 km transmission line, MCA-Nepal is on track to implement the remaining segments, further strengthening Nepal’s energy infrastructure. MCA-Nepal is committed to the successful execution of this procurement and the transmission line construction works while meeting the environmental and social standards of both the Government of Nepal and MCC.